(Learning Objectives 2, 3, 4, 5: Inferring transactions from a company’s shareholders’ equity) Theta Products Company reported the following shareholders’ equity on its balance sheet:

❙ Requirements 1. What caused Theta’s preference shares to decrease during 20X7? Cite all possible causes.

2. What caused Theta’s ordinary shares to increase during 20X7? Identify all possible causes.

3. How many shares of Theta’s ordinary shares were outstanding at December 31, 20X7?

4. Theta’s net income during 20X7 was $1,380 million. How much were Theta’s dividends during the year?

5. During 20X7, Theta sold no treasury shares. What average price per share did Theta pay for the treasury shares the company purchased during the year?